state any three characteristics of index number
Answers
An index number is a method of evaluating variations in a variable or group of variables in regards to the geographical location, time, and other features. The base value of the index number is usually 100 and indicates either to price, date, a level of production, etc.
There are various kinds of index numbers, however, in present, the most relatable is price index numbers, that particularly indicates the changes in overall price level (or in the value of money) for a particular time. Here, the value of money is not constant, even if it falls or rises it will affect and change the price level. An increase in the price level determines a decline in the value of money and a decline in the price level means an increase in the value of money. Therefore, the differences in the value of money are indicated by the differences in the overall price level for a particular time. Therefore, changes in the overall prices can be evaluated by a statistical device known as ‘index number.’
Answer:following are characteristics of index number :-
1. EXPRESSED IN
PERCENTAGE
(2) RELATIVE MEASURES OR MEASURES OF NET CHANGES
(3) MEASURE CHANGE OVER A PERIOD OF TIME OR IN TWO OR MORE PLACES
(4) SPECIALISED AVERAGE
(5) MEASURING CHANGES WHICH ARE NOT DIRECTLY MEASURABLE